Union Budget 2025-26: Summary & Mindmap

Union Budget 2025-26: Summary & Mindmap upsc

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IAS EXPRESS Vs UPSC Prelims 2024: 80+ questions reflected

Introduction

The Union Budget 2025-26 was presented by the Finance Minister, emphasizing the principles of “Viksit Bharat” with the theme “Sabka Vikas.” This budget recognizes four key development engines: Agriculture, MSMEs, Investment, and Export Promotion. It prioritizes the welfare of the poor, youth, farmers, and women while focusing on economic growth, infrastructure development, and social inclusion. The budget introduces various schemes and reforms to strengthen different sectors and boost India’s long-term progress.

4 Engines of Development

Agriculture

  • PM Dhan-Dhaanya Krishi Yojana
    • Covers 100 low-productivity districts.
    • Benefits 1.7 crore farmers.
    • Enhances irrigation and storage facilities.
  • Rural Prosperity and Resilience
    • Launched in collaboration with states.
    • Addresses underemployment through skilling, investment, and technology.
  • Atma Nirbharta in Pulses
    • 6-year mission for Tur, Urad, and Masoor pulses.
    • Ensures climate-resilient seeds and remunerative prices.
    • NAFED and NCCF to procure pulses for four years.
  • Enhanced KCC Limit
    • Increased from ₹3 lakh to ₹5 lakh.
    • Benefits 7.7 crore farmers.
  • National Mission on High Yielding Seeds
    • Strengthens research on pest-resistant seed varieties (100+ types).
  • Mission for Cotton Productivity
    • 5-year initiative to promote sustainable farming and quality improvement.
  • Makhana Board in Bihar
    • Enhances production, processing, and value addition of Makhana.
  • Fruits and Vegetables Program
    • Promotes efficient supply chains and better pricing.
  • Fisheries Development
    • Focus on sustainable fishing in Andaman, Nicobar, and Lakshadweep.
  • Urea Plant in Assam
    • Located at BVFCL with a capacity of 12.7 lakh metric tons.

MSMEs

  • Revised MSME Classification
    • Investment and turnover limits increased 2.5 times.
  • Micro Enterprise Credit Cards
    • Provides ₹5 lakh credit for 10 lakh enterprises.
  • Credit Cover for MSMEs
    • Guarantee cover increased from ₹5 crore to ₹10 crore.
  • Focus Product Scheme
    • Covers leather and footwear industries.
    • Generates 22 lakh jobs with a ₹4 lakh crore turnover.
  • Toy Sector Development
    • Encourages “Made in India” toys.
  • National Institute of Food Technology
    • To be established in Bihar.
    • Focuses on food processing, skilling, and entrepreneurship.
  • Fund of Funds for Startups
    • Expanded scope with an additional ₹10,000 crore contribution.

Investment

  • Urban Challenge Fund
    • ₹1 lakh crore allocation.
    • Supports city redevelopment, water, and sanitation projects.
    • ₹10,000 crore allocated for 2025-26.
  • Jal Jeevan Mission
    • Budget increased to ₹67,000 crore.
    • Extended till 2028 to benefit 15 crore rural households.
  • Maritime Development Fund
    • ₹25,000 crore allocation with 49% government contribution.
    • Supports shipbuilding, ports, and logistics.
  • Expansion of IITs
    • Infrastructure expansion for 6,500 more students.
  • PM Research Fellowship
    • 10,000 fellowships for IITs and IISc.
  • Day Care Cancer Centers
    • 200 centers to be set up in 2025-26.
    • All district hospitals to be covered in three years.
  • Bharatiya Bhasha Pustak Scheme
    • Digital books for Indian languages.
  • Nuclear Energy Mission
    • ₹20,000 crore outlay for five Small Modular Reactors by 2033.
    • Amendments to the Atomic Energy Act.
  • UDAN Regional Connectivity Scheme
    • Expands connectivity to 120 new destinations.
    • Targets 4 crore passengers in ten years.
    • Supports hilly and North-East regions.
  • Greenfield Airport in Bihar
    • Includes Patna expansion and Bihta brownfield airport.
  • Western Koshi Canal ERM Project
    • Financial support for Mithilanchal irrigation.
  • Tourism Development
    • 50 top destinations upgraded in challenge mode.

Export Promotion

  • Export Promotion Mission
    • Sectoral and ministerial targets set.
    • Led by Commerce, MSME, and Finance Ministries.
  • BharatTradeNet (BTN)
    • Unified digital trade documentation platform.
  • National Framework for GCC
    • Incentives for outsourcing hubs in Tier-2 cities.
  • Warehousing Facility for Air Cargo
    • Storage solutions for high-value perishable exports.

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Other Major Highlights

Taxation and Financial Reforms

  • Direct Taxes
    • No tax for income up to ₹12 lakh.
    • ₹12.75 lakh exemption for salaried individuals with deductions.
  • Income Tax Slabs
    • ₹0-₹4 lakh – Nil
    • ₹4-₹8 lakh – 5%
    • ₹8-₹12 lakh – 10%
    • ₹12-₹16 lakh – 15%
    • ₹16-₹20 lakh – 20%
    • ₹20-₹24 lakh – 25%
    • Above ₹24 lakh – 30%
  • TDS on Rent
    • Increased from ₹2.4 lakh to ₹6 lakh.
  • Updated Tax Returns
    • Time limit extended from two to four years.
  • Basic Customs Duty Exemptions
    • 36 life-saving drugs exempted.
    • Exemptions for EV and mobile battery components.
    • Exemptions for textile and electronics sector components.

Social Welfare and Inclusion

  • PM SVANidhi Scheme
    • UPI-linked credit cards with ₹30,000 limit for street vendors.
  • Gig Workers Identity Cards
    • e-Shram portal registration.
    • Social security and health benefits under PM Jan Arogya Yojana.

Conclusion

The Union Budget 2025-26 is a comprehensive roadmap toward a more developed and inclusive India. It focuses on economic growth, infrastructure expansion, and social welfare while providing tax relief and promoting investments. With an emphasis on agriculture, MSMEs, exports, and large-scale investments, this budget aims to strengthen the country’s economic resilience and global competitiveness. The reforms introduced will significantly contribute to India’s long-term progress and prosperity.

Practice Question

How does the Union Budget 2025-26 aim to achieve self-reliance in the agriculture sector through its proposed schemes? (250 words)

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